What did feed companies do in 2014?

With the development of the times, the feed industry has gradually entered a period of integration transformation. Different from previous years, now the threshold of the feed industry is high, "big fish eat small fish, small fish eat shrimp" is common in the industry. If the domestic leading feed enterprises want to win the first place in this ever-changing industry, they must "consolidate the foundation and explore innovation." Looking back on the 2014, it was an extraordinary year for feed enterprises. The ups and downs of the feed raw material market, the restrictions of the national policy, and the continuous downturn of the downstream aquaculture industry. In such a year of "turmoil", what have feed enterprises done?

Big Bei Nong: the Dark Horse of Aquatic Feed Industry

Dabei Nong has been mainly selling premix, with an annual production capacity of 8 million tons and an annual sales volume of about 4 million tons. At the same time, the figure of 20 per cent comprehensive feed gross margin has also become the highest in the industry. Speaking of which, Dabei Nong has been involved in the aquatic products market for 10 years, but for various reasons, enterprises have not come to the fore in the field of aquatic products. With the increasing development of the feed industry, whether it is the change of people's diet structure or the drive of policy reform, the big north farmers also like the aquatic feed as a "fat meat". Taking advantage of the industry experience accumulated over the years, Dr. Shao Genhao personally took over as president of the Fisheries Technology Group in November 2014, and the group set a sales volume of 800000 tons as the ambitious goal for 2017.

With the increasingly fierce competition in the feed industry, monotonous commodity trading has been unable to meet the mainstream needs of customers. Dabei Nong also makes use of the resources it has accumulated in the field of pig service over the past 20 years. Dabei Nong is more inclined to take pigs as a breakthrough and strive to give priority to promoting its concept of integrated service platform in the field of pig raising through the pig pipe network which has been popularized and applied as the main line. The company hopes that "by 2017, 100 million pigs, or 5 million sows, can be managed through the pig pipe network."

"sales of 800000 tons of aquatic feed", "management of 100 million pigs" and "management of 5 million sows" are all ambitious goals set by Dabei Nong before 2017. With the increasing development of the feed industry, can the fishery cause and transformation goal of Dabei farmers be achieved? We'll see.

Hefeng Animal Husbandry: break the doubt and go public successfully

Hefeng Animal Husbandry officially entered the Shanghai Stock Exchange on August 8, 2014, with an issue price of 5.88 yuan, a price-to-earnings ratio of 21.78 times, and a price-to-earnings ratio of about 24 times for its agricultural and non-staple food processing industry. In fact, a few years ago, Wofeng had plans to go public, and after the prospectus was issued, the industry was praised and derogated. Under the suppression of a lot of negative news, Wofeng's listing plan came to an end. Wofeng finally went public in 2014, but there is still plenty of negative news. There are those who question the barbaric expansion of Hefeng animal husbandry in the feed market, and there are also articles saying that the listing of Hefeng animal husbandry means a lot of money. At the same time, Zhang Tiesheng, another shareholder of Wofeng, has attracted considerable attention. According to the prospectus disclosed by the company, Zhang Tiesheng, a celebrity known as "Mr. White Roll" in the 1960s, holds 32.24 million shares in Hofeng Animal Husbandry, ranking sixth among the shareholders. Even so, since the listing, the stock price of Hefeng animal husbandry has ushered in eight trading boards, which are warmly sought after by investors. The strong performance of stocks also diluted the previous negative news.

New Hope: overseas Development Strategy strides "going out"

New Hope Liuhe Group ranks first in China in terms of feed production capacity and feed sales. According to the data, the sales volume of New Hope Liuhe Feed in 2013 was 15.41 million million tons, and the operating income of the feed business was 46.1 billion. As the largest feed enterprise in China, New Hope is not content with the status quo, but looks overseas. New Hope's overseas business revenue has grown steadily since 2003, reaching 2.717 billion in 2013, accounting for 3.9 per cent of total revenue. In August 2014, Wang Hang, vice chairman of New Hope Group, proposed that New Hope will expand overseas at the rate of 10 factories a year in the future. Careful netizens will find that there are many new hopes to build overseas factories and overseas investment projects in 2014. Reviewing the history, since 1999, New Hope has set up nearly 40 factories or institutions in 16 countries and regions, and the company has been focusing on Southeast Asia and South Asia. Most of the overseas projects of New Hope are feed production projects. According to the feed editor of Nongbo, the key development areas of New Hope in the future are mainly Indonesia and Russia. In view of the business foundation and development momentum of New Hope in Indonesia, the goal of completing 11 new feed plants in 2017 has been set. The construction of large feed plants in Moscow and Yekaterinburg, Russia, at a cost of 80 million yuan, is also initially planned to be put into production this year. As China's feed production capacity first, the world's second feed enterprises, the new hope to accelerate overseas development strategy is also expected, reasonable. The feed editor of Nongbo is also full of expectations and wants to witness the future map of new hope.

Cofco: complete two overseas mergers and acquisitions and declare war on four grain merchants

The four major grain merchants in the world, "ABCD", not only control the global grain operation, but also control 70% of China's soybean processing and trade. As China's leading large agricultural group, Cofco implemented a series of acquisitions and mergers and acquisitions in 2014. On February 28th, Cofco acquired a stake in Nidera51%, a global agricultural products and commodities trading group. Just over a month after the acquisition of Nidera, Cofco stepped in again, and on April 2, together with Hopu Fund, acquired a 51 per cent stake in Bao Agriculture, a unit of Noble Group, which is based in Hong Kong and listed in Singapore. Two overseas M & A transactions passed the global M & A review in October 2014 and the settlement was successfully completed. Foreign media also began to appeal: Cofco began to declare war on the four major grain merchants! As an analyst fighting in the front line of the grain and oil market, every time when analyzing the soybean meal market, the feed editor of Nongbo will inevitably talk about the influence of American beans, outer disk, international and other factors; domestic oil factories, traders, feed factories, and even farmers who do not pay attention to the trend of the outer disk of American beans when buying soybean meal? In the final analysis, 80% of domestic soybeans are imported, and the pricing power has been handed over to the big four grain merchants. After the completion of the merger and acquisition, the asset scale of Cofco can compete with the four major grain merchants of the international giant ABCD, which provides a guarantee for the further development of Cofco and participation in international competition, which is of great strategic significance to stabilize China's grain market. Cofco has made a good start for the domestic trade market to enter the international market, but the future development road can be said to be "a long journey, I will not stop pursuing."

Tang Renshen, Zhengda, Wen and Young Eagle set up a joint directional professional breeding alliance of large enterprises.

On December 20, 2014, at the fourth Summit Forum of the Sino-American International breeding Union, Tang Renshen Chairman Tao Yishan proposed that there are basically two successful breeding paths in the world, one is the joint breeding path, such as the United States NSR, Canadian CCSI and Denmark, and the other is the independent breeding path for large enterprises, such as PIC and Murphy Brown. After decades of exploration, due to the restriction of various factors, the road of joint breeding and independent breeding of large enterprises is not suitable for China's national conditions. Therefore, in order to truly create Chinese breeding pigs with China's independent intellectual property rights, in line with the characteristics of China's breeding consumption, and to improve the efficiency of Chinese breeding, Tang Renshen led the establishment of a joint directional professional breeding alliance of large enterprises.

Tao Yishan said that the joint targeted professional breeding of large enterprises is the first attempt in the industry to truly realize the sharing of breeding data in China, and genetic exchanges can be carried out among allied enterprises at any time, which will greatly accelerate genetic progress and share genetic advantages among allied units. The so-called "consortium of large enterprises" is the performance index data of 20 million pig breeding leading enterprises (Zhengda, Wen's and Young Eagle) in the United Nations, forming a large alliance database platform; "directed" breeding includes two concepts, including the breeding needs and directions of large enterprises, as well as the specific needs of different regions in China's huge market. "professionalism" is reflected in the international and domestic R & D research groups gathered by the alliance platform, as well as the powerful gene sequencing of BGI.

Tang Renshen, Wen Shi, Zhengda, Young Eagle and Walter Hill have jointly invested and become the five major shareholders of Meishen International breeding Center. Domestic scientific research institutions (including Chinese Academy of Agricultural Sciences, South China Agricultural University, Huazhong Agricultural University, Hunan Animal Husbandry Research Institute, Huada Genome) have jointly signed strategic cooperation agreements for large enterprises' joint directional professional breeding industry-university-research alliance.

Haida: the return of the King in 2014

In 2014, each enterprise can be said to show its own ability, want to deal with the dangerous feed industry, the performance is more eye-catching is Haida Group. 2013 was a difficult year for Haida, with a marked decline in performance. Amid the gloom and skepticism in the industry, 14 years after the return of the King of Sea, it can be said that he took the lead in the third-quarter report released. In the case of poor breeding weather in 2014, Haida's performance in the first three quarters still achieved substantial growth, which is rare, which basically confirms the previous judgment of "reversal of the company's business fundamentals" in the company's in-depth report. During the peak breeding season in the second half of the year, aquaculture continues to face difficulties, driven by positive factors such as marketing measures such as deep ploughing market segmentation and strengthening the differentiated competitive advantage of technical services. Haida's sales situation is obviously better than the industry average and major competitors. Although the companies' fourth-quarter reports have not yet been released, for aquatic feed enterprises, the overall situation has been decided.